hard · Corporate Credit Analysis

A unitranche debt facility in private credit is distinct from a traditional senior/junior structure primarily because:

1. It uses a single credit agreement with a blended interest rate for the borrower.
2. It automatically converts to equity if leverage exceeds 7.0x.
3. It requires the issuer to be an investment-grade rated entity.
4. It prohibits the use of any maintenance financial covenants.

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